As we move from a paper-based to a non paper-based economy, consumers now have a myriad of card-based options for purchasing goods and services and for accessing their financial accounts. There are conventional credit cards (general revolving credit accounts); co-branded credit cards (revolving credit accounts issued in the name of the issuing bank and a partner, such as a university, airlines, computer manufacturer, and so forth, often including incentives or rebates usable for partner discounts or rewards); private label cards (revolving credit accounts issued in the name of a private company and typically usable only at that company's stores, such as a Macy's or Hecht's card); stored value or gift cards (prefunded cards storing cash value, such as a Giant card or Starbuck's card, that must periodically be replenished); ATM cards (allow access to the accountholder's bank account by inserting the card into an ATM and entering a PIN number); and debit cards/check cards (allow access to the accountholder's savings/checking account to pay for goods/services at a point-of-sale [POS] device).
Debit cards/check cards generally fall into two categories, so-called “on-line” or PIN-based debit/check cards and so-called “off-line” or signature-based debit/check cards. PIN-based cards require entry of a correct PIN to consummate a purchase, and the transaction is typically run through a regional electronic funds transfer (EFT) network to approve the transaction and, later, settle the funds transfer. Examples of well-known existing EFT networks are STAR, NYCE, and Pulse. Signature-based cards are typically issued with a VISA/Mastercard (or other) card association logo/hologram, and transactions using such cards are run through the associated card network. Signature-based cards typically, although not always, will verify cardholder identity by checking the signature of the person presenting the card. Because the fees associated with running transactions through a national network like VISA/Mastercard are higher than those associated with regional EFT networks, some cards have both capabilities, and a merchant's POS system may provide for first attempting to run the transaction through the regional EFT before accessing a national network.
As described herein, ATM cards, debit cards, check cards, and stored value cards can be collectively referred to as “bank cards.”
For a number of reasons, consumers tend to be much less willing to switch their bank accounts (or open new ones in addition to their existing bank accounts) than their credit accounts. Thus, while credit card issuers find an active market of consumers ready to switch their credit accounts and/or open up new credit accounts, savings/checking account issuing banks are finding it increasingly hard to sign up new bank account holders so as to maintain or increase the customer base.
What is needed is a system and method that makes it easier and more attractive to consumers to open new bank accounts.